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Medium-Term Business Plan

1. Introduction of the Medium-Term Business Plan

 Our previous medium-term business plan, “NEXT QCS’S” (an acronym of the keywords Quality, Cost, Speed and Smile), took effect in April 2015. Under the said plan, we took steps geared to boost productivity across the region and contribute to the regional development by providing genuine consultation services entailing swift implementation of the plan-do-check-act (PDCA) improvement cycle across various measures.
 Looking back on the business environment surrounding The Hokkoku Bank, Ltd. (“Bank”) during that period of time, the regional economy was in a path of moderate recovery, enjoying stimulus from the opening of Hokuriku Shinkansen, high-speed train service. On the other hand, business environment remained tough for us with the declining and aging population as well as intense competition from our industry peers and entities from different industries.
 The Bank aims to achieve progressive development of its community by providing comprehensive information and financial services for the region, under its corporate philosophy of “Trust – a bridge to a fruitful regional future: Enrich interaction and growth in the region.” As such, we are once again returning to our origins in that regard, and have accordingly drawn up a new medium-term business plan, which will take effect in April 2018, gearing toward offering our customers community-based financial services.

2. Our New Medium-Term Business Plan

  •  Aiming to materialise our corporate philosophy and put into practice community-based financial services, we envision ourselves becoming one of the next-generation regional commercial bank that provides comprehensive and multifaceted financial solutions. We believe the new medium to long term vision will elevate our stature as a bank that is firmly rooted in our community. Under this policy, we aim to help bring about development that will benefit our community and the region, work hand in hand with community members, both retail and corporate customers, throughout any economic climate.
     In light of the notion that initiatives involving “communication,” “collaboration” and “innovation” are necessary to achieve our vision, we have used those three keywords in establishing our new medium-term business plan “Communication × Collaboration × Innovation 2021.”
    • Communication: Continuous focus on the enhancement of communication with our customers and within the Bank.
  • • Collaboration: Development of extensive partnership with our customers as well as within the Bank.
  • • Innovation: Continuous support for region-wide based innovative transformation initiatives which pave ways for the regional growth amid constant changing social environment.

3. Overview of the Medium-Term Business Plan

Name Communication × Collaboration × Innovation 2021
Period April 2018 to March 2021

Emerge as one of the next-generation regional commercial bank:

Contribute to attain region-wide innovation through customer-oriented approach via extensive
communication and collaboration, both within the Bank as well as with our community.

Basic policy Continue with our traditional banking services, such as bank deposits, lending, currency exchange
and settlement, while strengthening our new initiatives of recent years, namely bank cards, leasing, consultation services.

4. Main Action Plan

• Engage in marketing and sales based on customer-oriented approach

• Develop a stronger business framework that provides an optimal mixture of financing and leasing services

• Tap into opportunities towards a cashless society

• Enhance sales of corporate and retail consultation services

• Pursue customer-oriented channel strategy

• Intensify efforts in overseas business

5. Management Benchmarks and Targets

March 2021 (targets)

Ordinary profit (consolidated) ¥12.5 billion
Profit after tax (consolidated) ¥8.0 billion

Income from new business (non-consolidated)

<bank cards, leasing, consultation services>

¥2.5 billion

Non-personnel cost and personnel cost (non-consolidated) ¥25.0 billion – ¥25.5 billion
Capital adequacy ratio (consolidated) 12.5% – 13.0%